If they are meeting all contractual obligations, they are acting morally - but I doubt any human being actually enjoys laying people off; it would haunt me to get rid of people for no fault of their own. I’d make an exception for cutting union workers we never wanted to retain in the first place because of performance issues, but can now cut because the required dire fiscal conditions outlined in the contract have been triggered.
Now, layoffs may not always be wise for the company (long-term), especially in areas where lots of training has been invested (in some jobs, a worker must be trained for years before they contribute to the bottom line), and/or where obtaining highly skilled workers is necessary and normally difficult. I am surprised furloughs and other job-neutral cost-containment strategies are not in more widespread use in skilled industries.
I've worked for some whom I pretty sure did enjoy it. But then again, I'm also using the term 'human' somewhat loosely.